FULL COMPENSATION OF VICTIMS OF CROSS-BORDER ROAD TRAFFIC ACCIDENTS IN THE EU: THE ECONOMIC IMPACT OF SELECTED OPTIONS

Abstract

Abstract: Cross-border road traffic accidents raising jurisdictional issues represent about 1% of road traffic accidents in the EU27. The direct costs of these accidents can be set at approximately \u20ac450 million yearly, of which \u20ac150 million are due to medical expenses and damage to property, whereas \u20ac300 million represent loss earnings and foregone production. If one also takes into account the indirect costs of cross-border road traffic accidents, namely the physical and psychological consequences for victims and their relatives, the total economic impact of those accidents amounts to about \u20ac1.04 billion annually. Several cross-border road traffic accidents create a risk of undercompensation of the non-resident victim, due to differences in the standard of living as well as in the calculation of the quantum of damages in member states. The problem of victims\u2019 undercompensation in the event of a cross-border traffic accident has so far been approached mostly under the aegis of the proposed harmonisation of European Tort Law, especially within the debate on the \u201cRome II\u201d regulation on non-contractual obligations. Already during first reading, the European Parliament proposed to address this issue by mandating the application of the law of habitual residence of the victim when assessing the quantum of damage awards